Fingad.com

Guizhou Chitianhua Co.,Ltd.

  (Public, SHA:600227)

Company’s Fact

Guizhou Chitianhua Co.,Ltd. was established in August 28, 1998, by the first batch of 300 key enterprises and 100 State Councils with a modern enterprise system. The main sponsor of the Company is Chitianhua Group Co., who invests in the urea plant, and other related high-quality assets, joint four enterprises to initiate the establishment of the listed companies.

Company was registered on August 28, 1998 in Guizhou Administration for Industry and Commerce and Guiyang City National High-tech Industrial Development Zone, with a registered capital of 170 million yuan, it is the high-tech agricultural chemical company and highly supported by the state industrial policy. The Company's main business includes: nitrogen, phosphate, fertilizer, chemical products (excluding chemical dangerous goods) production and sales; biological engineering products (excluding the prevention of use of biological products) and biopharmaceutical research, development, production, sales ; healthy food, functional food, green product research, development, production, marketing, capital investment and other related business operations.

On December 13, 1999, the company, on the Shanghai Stock Exchange, issued RMB 70 million shares of common stock to the public successfully.

On February 21, 2000, 63 million public shares of the company listed on the Shanghai Stock Exchange.

On June 13, 2000, the Securities Investment Fund of 700 million A shares listed in circulation.

Chitianhua is the largest fertilizer production enterprise in Guizhou Province. Its production capacity has been increased from an annual output of 480,000 tons of urea, to an annual output of 630,000 tons, the production level stood 50% of total chemical fertilizers and 70% of the total nitrogen fertilizer in Guizhou province. In 1998, 1999 and 2000, the company urea production and related indicators hit the best record with the annual output of 720,000 tons in 2000. At present, the company's total assets reached 902 million yuan and annual sales income over 600 million yuan.

The company has 998 employees currently.

Financial Overview

10.77
+0.32 (3.06%)
Jul 1 - Close    

Open:  10.72      Mkt Cap:  3.29B      P/E:  18.66      Dividend:      -    

High:  10.89      52Wk High:  29.80      F P/E:      -      Yield:      -    

Low:  10.40     52Wk Low:  9.18     Beta:      -      Shares:  305.81M    

Vol:  4.72M      Avg Vol:      -      EPS:  0.58      Inst. Own:      -

Key Stats & Ratios

Date                Open High   Low     Close Volume

27-Jun-08      10.99 11.20 10.37 10.45 7,039,400

26-Jun-08      11.58 11.85 11.27 11.52 7,331,200

25-Jun-08      10.68 11.43 10.60 11.41 7,044,460

24-Jun-08      10.16 10.76 10.12 10.63 5,860,050

23-Jun-08      10.00 10.49 9.90    10.12 4,409,130

20-Jun-08      9.86    10.62 9.20    10.40 9,147,690

19-Jun-08      10.40 10.68 9.65    9.65    5,892,530

18-Jun-08      9.80    10.78 9.18    10.72 7,868,570

17-Jun-08      10.87 10.97 9.78    9.81    5,430,270

16-Jun-08      11.24 11.50 10.66 10.87 2,960,140

13-Jun-08      11.45 11.74 11.08 11.15 3,536,250

12-Jun-08      11.86 12.13 11.00 11.40 4,838,580

11-Jun-08      12.40 12.42 11.80 11.96 4,176,540

10-Jun-08      13.65 13.65 12.74 12.74 3,323,210

6-Jun-08        14.28 14.35 14.10 14.15 1,596,000

5-Jun-08        14.11 14.40 14.03 14.17 1,787,860

4-Jun-08        14.68 14.69 14.10 14.21 3,106,630

3-Jun-08        14.50 15.00 14.50 14.67 2,516,030

2-Jun-08        14.51 14.76 14.46 14.63 2,815,530

30-May-08     14.83 15.15 14.60 14.78 2,766,450

29-May-08     15.15 15.56 14.80 14.82 5,565,830

28-May-08     14.74 15.30 14.40 15.19 4,964,740

27-May-08     14.70 14.87 14.20 14.69 2,702,770

26-May-08     14.51 15.00 14.46 14.58 4,018,430

23-May-08     14.95 15.27 14.20 14.45 5,647,130

Recently, from domestic to international, the price hike of oil related and seed grain agricultural products are the factor that causing China or even global inflation. Chitianhua is Guizhou province's largest chemical fertilizer production enterprise with a new energy (DME) concept, and has many projects that will lead the high-growth performance of the company. In today’s market, the Company is surely a high-quality blue-chip with these two important factors.

The increase of agricultural prices stimulates the fertilizer industry

China's chemical fertilizer is the biological-intensive agriculture, the agricultural production is on the high degree of dependence on the country’s chemical fertilizers.  At the moment, the usage of chemical fertilizer in China is up to 43 million tons every year, accounting around 1/3 of the global fertilizer usage, ranking first in the world. Fertilizer in China (with pesticides) accounted for over 20 percent of the cost of agriculture. Since 2007, raising prices of agricultural products and agricultural restructuring have increased the amount of fertilizer usage, the fertilizer market faces strong market demand.

Chitianhua’s main focus is on the nitrogen fertilizer business, its chemical fertilizer production accounted 50 percent of the entire Guizhou Province, total nitrogen of 70 percent, is the largest fertilizer manufacturer in Guizhou Province.

The Company has joint Hongfu Industrial Co., and set up the Guizhou-fu Chemical Co., Ltd. with an annual output of 300,000 tons construction of synthetic ammonia and 150,000 tons of DME coal chemical projects, in which the Company holds 51 percent stake, (the total investment will reach 3.2 billion) is expected to be completed in the second half of 2009. The production phase of the project can achieve an average annual sales income of 117,582.56 million yuan, total 439.7634 million yuan in profits plus tax, 214.3146 million yuan in profit after tax and investment profit margin 12.29%.

Chitihua has issued convertible bonds to raise funds of 450 million yuan for the coal chemical project: an annual output of 1.12 billion cubic meters of gas and 520,000 tons of urea, 300,000 tons methanol co-production. The Company holds 50 percent stake, and the project is expected to cost 2.92 billion yuan and be completed and put into production in the first half of 2010. The completion of the project is expected to achieve net profit of 109.0696 million yuan, 152.4533 million yuan, 141.462 million yuan respectively.

While the Group Holding’s (the joint-stock company which holds 27.07 percent) Chitianhua Paper Co., Ltd. its 200,000 tons per year bamboo forest and paper integration project has achieved co-production, the project to use the local rich resources of bamboo, with the international advanced equipment and waste residue energy conservation and environmental protection cycle power generation technology, plus the support of low-interest government bonds, is expected to achieved sales of more than 10 billion yuan, about 200 million yuan in net profit, will contribute the joint-stock companies to 57.8991 million yuan, equivalent to 0.34 yuan increased in earnings per share.